JSW Energy Limited Investor Presentation February 2020 Agenda - PowerPoint PPT Presentation

JSW Energy Limited Investor Presentation February 2020

Agenda Overview Value Proposition Quarterly Highlights Appendix 2

JSW Group – Overview JSW Energy 1 : Engaged across the value chain of JSW Steel 1 : India’s leading integrated steel producer power business (Installed Capacity: ~4.5 GW) (Installed Crude Steel Production Capacity: ~18 MTPA) - Market Cap 2 : USD 1.5 Bn - Market Cap 2 : USD 9.8 Bn JSW Infrastructure : Engaged in development and JSW Cement: Manufacturer of PSC, OPC and GGBS cement (Operational Plants ’ Capacity: 14 MTPA) operations of ports (Operational Capacity: 93 MTPA) JSW Paints: Commenced operations in March 2019 JSW Ventures: Early-stage, tech-focused, venture (Annual Capacity: 125 KL); Only fully-automated, capital fund based in Mumbai (Portfolio: Purplle, water-based plant in India IndusOS, Limetray, Homelane) JSW Sports : Supporting Indian athletes and sports JSW Foundation: Social development arm of JSW ecosystem (Teams Owned: Bengaluru FC, Delhi Group, committed towards empowerment of Capitals, Haryana Steelers) communities, with a footprint across 11 states USD 14 Billion Group – Amongst India’s Largest Conglomerates (1) Listed companies 3 (2) USD/ INR = 71.3 Source: RBI reference rate as on Feb 10, 2020

JSW Energy – Presence Across The Value Chain  Operational Transmission Line –  Current Installed Capacity : Power Power MSETCL 1 : JV with two 400KV 4,559 MW Generation Transmission transmission lines Power Trading  Handling trading volume of Mining  Producing 6-7 MTPA Lignite in ~2 Bn units 3 Barmer through BLMCL 2 Amongst the Largest Private Independent Power Producers in India (1) Maharashtra State Transmission Company Ltd. 4 (2) BLMCL is a 49:51 JV between JSW Energy (Barmer) Ltd (100% subsidiary of JSW Energy) and Rajasthan Government undertaking (3) During FY2018-19

Leading IPP with ~4.5 GW of Installed Generation Capacity Baspa II: 300MW & Karcham Wangtoo: 1,091MW Barmer: 1,080MW • Units operating: Baspa II since 2003 and Karcham Wangtoo since 2012 • Configuration : 8 X 135MW • Technology & Fuel Source: Hydro • Units operating: since 2010 3 • Power Offtake: Long Term PPA • Technology: Sub-critical pithead Lignite based TPP • Asset Value to JSW Energy: INR 9,275 Crore/ $1,301mn 2 • Fuel Source: Captive Lignite mines of BLMCL 1 • Power Offtake: Long Term PPA • Project Cost: INR 7,165 Crore/ $1,005mn 2 Kutehr: 240 MW (Under-construction) • 240 MW hydro plant under construction at Kutehr Ratnagiri: 1,200MW (Himachal Pradesh) awaiting regulatory approval for PPA with Haryana Discom • Configuration: 4 X 300MW • Units operating: since 2011 3 • Technology: Sub-critical TPP Salboni: 18 MW (Under-construction) • Fuel Source: Imported Thermal Coal • 18 MW thermal plant under-construction at Salboni (W.B.) • Power Offtake: Long Term PPA & Merchant • Project Cost: INR 5,516 Crore/ $774mn 2 Nandyal: 18 MW • Commissioned 18 MW thermal capacity in Q1FY20 at Vijayanagar: 860 MW Nandyal (A.P.) with LT PPA under Group captive scheme • Configuration: 2 X 130MW and 2 X 300MW • Units operating: since 2000 3 Solar: 10 MW • Technology: Sub-critical TPP • Fuel Source: Imported Thermal Coal & Gas • Commissioned ~10 MW solar power projects across various • Power Offtake: Long Term PPA & Merchant locations within JSW Group, and exploring other • Project Cost: INR 3,096 Crore/ $434mn 2 opportunities in Renewable segment Well Diversified Fuel/Geography/Offtaker Mix (1) Long term FSA with BLMCL for supply of lignite from its captive mines (2) USD/ INR = 71.3 Source: RBI reference rate as of Feb 10, 2020 5 (3) Denotes start of first unit in respective fiscal year; TPP – Thermal Power Plant

Proven Track Record FY12 FY19  CAGR FY12 – 19: 8% Capacity (MW) 2,600 4,541  CAGR FY12 – 19: 7% Net Generation (MUs) 13,594 22,088  CAGR FY12 – 19 : 6% Total Revenue INR 6,265 Crore / $879mn 1 INR 9,506 Crore / $1,333mn 1  CAGR FY12 – 19: 11% INR 1,594 Crore/ $224mn 1 INR 3,221 Crore/ $452mn 1 EBITDA  CAGR FY12 – 19: 22% INR 170 Crore/ $24mn 1 INR 685 Crore/ $96mn 1 PAT Thermal Coal, Lignite, Hydro,  Diversifying fuel sources Fuel Type Thermal Coal Solar Power Generation, O&M, Power Generation, O&M,  Presence across the value chain Business Segment Transmission, Trading, Coal Mining Transmission, Trading, Coal Mining Delivering Sustainable Growth driven by Focused Execution and Financial Prudence (1) USD/ INR = 71.3 Source: RBI reference rate as of Feb 10, 2020 6

Sound Corporate Governance  Ensures regular review of audit plans, significant audit findings, adequacy of internal audit system, compliance with applicable regulations by the Company and its subsidiaries Audit Committee  Comprises of three Independent Directors and one Non-Executive Director  Identifies qualified persons and recommends to the Board the appointment, removal and evaluation of Directors Compensation and  Responsible for drafting policy on specific remuneration packages for Executive Directors and approving the payment Nomination & of remuneration to managerial personnel Remuneration  Formulate criteria for independence of Director, evaluation of Independent Directors, policy on Board diversity Committee  Comprises of two Independent Directors and one Non-Executive Director Stakeholders  Responsible for the functioning of the investor grievances redressal system Relationship  Comprises of one Independent Director, one Non-Executive Director and one Executive Director Committee  Risk Management Periodically reviews risk assessment and minimisation procedures Committee  Comprises of two Independent Directors, one Non-Executive Director and two Executive Directors  Formulates and recommends to the Board a CSR Policy including list of projects and programs Corporate Social  Responsibility (CSR) Periodically reviews the progress of CSR activities and programs Committee  Comprises of one Independent Director, one Non-Executive Director and one Executive Director All Key Committees in place; Adequate Independent Director representation 7

Agenda Overview Value Proposition Quarterly Highlights Appendix 8

Project Execution Expertise Driving Efficient Capital Allocation Project cost of select power plants set up by other players in the industry 1 st COD Power Project Capacity Project cost MW INR Crore/MW $mn/MW 2 Year JPVL (Nigrie) 1,320 7.92 1.11 2014 Barmer 1 Giral (Rajasthan) 250 7.69 1.08 2011 (2010-2013): Ratnagiri 1,080 MW @ DB Power (Janjgir-Champa) 1,200 7.02 0.98 2014 (2011-2012): INR 6.63 Crore 1 /MW 1 250 7.00 0.98 2010 Neyveli (Barsingsar) 1,200 MW @ (~$0.93mn/MW) 2 Vijayanagar GMR EMCO (Warora) 600 6.25 0.88 2013 INR 4.60 Crore/MW (2010): (~$0.64mn/MW) 2 Adhunik (Padampur) 540 6.18 0.87 2013 600 MW @ INR 3.28 Crore/MW Vijayanagar Dhariwal (Chandrapur) 600 6.22 0.87 2014 (~$0.46mn/MW) 2 (2000-2001): Lanco (Amarkantak) 600 5.23 0.73 2009 260 MW @ Tata Power/DVC (Maithon) 1,050 5.24 0.73 2011 INR 4.34 Crore/MW (~$0.61mn/MW) 2 Aryan Coal (Kasaipalli) 270 5.00 0.70 2011 Lanco (Udupi) 1,200 4.67 0.65 2010 (1) High capital cost due to CFBC boilers for lignite based power plant 9 (2) USD/ INR = 71.3 Source: RBI reference rate as of Feb 10, 2020

Diversified and Balanced Portfolio of Efficient Operating Assets Improving LT PPA tie-up rendering high cash flow visibility; Portfolio well-diversified across fuel sources ~98% of LTPPA under two-part tariff (fuel cost/forex pass through) • Imported coal 5,000 90% 80% • 75% Lignite 64.5% • 4,000 70% Hydro 60% 3,579 3,328 • Renewable (RE) - Solar 2,866 3,000 50% 2,657 0.2% RE 2,000 30% 30.5% FY16 FY17 FY18 FY19 Hydro LT PPA (MW) LT PPA % 23.7% Lignite Sound operating efficiency characterised by falling O&M Cost/MW; Imported coal Further, one among the lowest O&M cost in the sector 45.6% Period FY16 FY17 FY18 FY19 4,559 MW 19.4 19.4 19.3 18.7 O&M Expenses (INR Lakh/MW) 10

Robust Financial Risk Profile Amongst the strongest balance sheet in the Power sector Proactive debt reduction through prepayments/ repayments 3.8 14,476 3.5 4.0 3.4 13,384 3.1 2.9 ~ INR 4,950 Cr 3.0 11,278 10,050 9,530 2.0 1.4 1.3 1.0 0.9 0.8 1.0 0.0 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Net Debt (INR Cr) Net Debt/Equity (x) Net Debt/EBITDA (TTM) (x) Ample liquidity characterized by robust cash accruals, and availability of undrawn bank lines that can be tapped in any exigency Existing business of JSW Energy continues to generate gross cash accruals of ~INR 1,900 Cr 1 annually   Ability to raise Short-term lines/ WC lines/ Commercial Papers in excess of INR 1,000 Cr  JSW Energy is the second largest entity in the USD 14 Bn JSW group, whose strong name in the market enhances the ease of tapping in both the ECM/DCM, which adds to financial flexibility Further, JSW Energy holds ~INR 1,890 Cr 2 worth JSW Steel shares (#7 Cr shares) which further enhances financial flexibility  (1) Computed as PAT+ Depreciation+ Deferred Taxes+ Exceptional items for FY19 11 (2) As on Dec 31, 2019